INTELLIGENCE INSPECTOR INTELLIGENCE SQUAD NO IV AGRICULTURE INCOME-TAX AND SALES TAX Vs. RANKEY INVESTMENT AND TRADING COMPANY LIMITED

JUDGEMENT

(1.) ADVOCATE Sri. N. Muraleedharan Nair takes notice on behalf of respondent. This is an appeal from the interlocutory order passed by the learned single Judge in C. M. P. No. 29024 of 1995 in O. P. No. 16124 of 1995. The complaint of the appellant is that the learned Judge has erred in directing release the goods detained under exhibit P3 unconditionally pending decision of the original petition.

(2.) APPEAL is at the instance of the Intelligence Inspector, Intelligence Squad No. IV, Agricultural Income-tax and Sales Tax, Palakkad, respondent in the original petition. Challenge in the original petition is against detention of 10 rolls of coaxial cables transported through South Eastern Roadways in Lorry No. KRH 7263. Exhibit P3 notice issued under the provisions of section 29-A (2) of the Kerala General Sales Tax Act, 1963 is sought to be quashed. Along with the original petition the petitioner filed C. M. P. No. 29024 of 1995 seeking an interim relief to release the goods unconditionally.

(3.) SRI. Karunakaran Nambiar, learned Additional Advocate-General (Taxes), submitted that if the goods transported are to come under item No. 49 in the First Schedule to the Kerala General Sales Tax Act and after the amendment under Act 5 of 1995 tax leviable will be at the rate of 10 per cent. But if the goods are to come under item No. 120, then the tax will be at the rate of 20 per cent. According to the Revenue, the goods transported would come under item No. 120. Learned counsel appearing on behalf of the respondent herein submits that the goods cannot be an article coming under any of the items. This is a matter which has to be decided by the statutory authority for the first instance after giving proper opportunity to the respondent herein. But, in the meanwhile, there will be an interim direction to the appellant herein to release the goods covered by exhibit P3 to respondent herein on its executing a bank guarantee to the extent of 50 per cent of the amount directed to be given as security under exhibit P3. Appeal stands allowed as above. Appeal allowed. .